Advanced Emissions Solutions (NASDAQ: ADES) said Sept. 12 that it has worked out a Non-Prosecution Agreement (NPA) between the U.S. Attorney’s Office for the Eastern District of Texas and company subsidiaries ADA-ES Inc. and ADA Environmental Solutions LLC (ADA).
Under the NPA, the Justice Dept. has agreed not to assess fines or pursue any criminal, civil, or administrative action against ADA and its current or former employees, agents, officers, and directors with respect to allegations that ADA misappropriated trade secrets with regard to the manufacture of activated carbon. Activated carbon is a major source of mercury emissions control for coal-fired power plants.
The NPA resulted from a Justice Dept. investigation of events arising out of an attempted acquisition by ADA of Norit in 2006 which led to civil litigation brought by Norit against ADA in 2008 for alleged misappropriation of trade secrets. The dispute with Norit was settled by ADA in 2011 after extensive litigation and arbitration. ADA fully cooperated with the Justice Dept. and the parties agreed to enter into the NPA to swiftly resolve the investigation, said the Sept. 12 statement.
In the NPA, ADA acknowledges that prior to 2009, it inappropriately maintained confidential information that had been provided to it by another company and affirmed that it will continue to comply with the settlement agreement with Norit from August 2011, and continue with the training programs and compliance checks that ADA proactively implemented two years ago to safeguard confidential information. The execution of the NPA and continued implementation of the steps already taken to address this matter, close out the Justice investigation.
Advanced Emissions Chairman of the Board W. Phillip Marcum stated: “The NPA confirms that the investigation has been successfully concluded, without material adverse impact, and brings to a close the issues arising out of the dispute with our former business partner. The NPA also confirms that the programs we instituted two years ago are appropriate and adequate. We are glad that this matter was quickly concluded and we look forward to the significant opportunities in our Refined Coal and MATS compliance businesses.”
Advanced Emissions Solutions serves as the holding entity for a family of companies that provide emissions solutions to customers in the power generation and other industries.
- ADA-ES Inc. supplies Activated Carbon Injection (ACI) for mercury control, Dry Sorbent Injection (DSI) for acid gases, and technology services and other offerings in support of emissions strategies. ADA’s M-Prove technology, which reduces emissions of mercury and other metals from Power River Basin coal, is applied directly to coal at power plants, or offered through a licensing agreement with Arch Coal (NYSE: ACI) for application at its mines. It is also developing technologies to advance cleaner energy, including CO2 emissions control technologies through projects funded by the U.S. Department of Energy and industry participants.
- Clean Coal Solutions LLC (CCS) is a 42.5% owned joint venture by ADA that provides ADA’s patented Refined Coal (RC) CyClean technology to enhance combustion of and reduce emissions of NOx and mercury from coals in cyclone boilers and ADA’s patent pending M-45 and M-45-PC technologies for Circulating Fluidized Boilers and Pulverized Coal boilers respectively.
- BCSI LLC is a custom designer and fabricator of engineered emissions control technologies, bulk material handling equipment, bulk storage systems, water/waste water treatment equipment, and custom components. BSCI supplies DSI for acid gas control using its technologically advanced cool, dry conditioned conveying air systems. BCSI’s technical solutions serve a wide range of industrial clients including coal-fired utilities, cement kilns and industrial boilers.